While there are many factors that affect the rates of your car insurance, mileage is one of the bigger, ongoing ones. The mileage on your car will make a difference in what you pay when you first insure it, but the miles you put on your car afterwards will also have a substantial impact too.
No matter how many miles you have, you can always get a cheaper rate by entering your zip code now to get multiple car insurance quotes.
Usually insurance costs more on a new car. The only time there is an exception is if the car is an antique, a classic, or an insanely valuable car despite its age. Therefore, typically you will pay more for your car insurance the less mileage it has. Insurance then flips around, and charges you more money for more mileage as time goes on.
This is because, very simply, the more mileage you put on your car, the more you are using it. If you are using your car more often then your car is at greater risk of getting damaged either through collision or non-collision related incidents.
The more times your car is at risk of being subjected to an insurance claim, the more your insurance company is going to charge you to cover part of the potential costs. The less you drive, the less you will pay.
Reducing Your Car Insurance Mileage to a Minimum
When you buy a car you certainly don’t buy it with the intention of storing it in a garage for very rare, occasional use. Unless, of course, the car is a show car or a project car! In that case, look into very specialized antique or classic car insurance.
Therefore, plan on putting miles on your car and plan on your insurance possibly going up as a result of it. One of the best ways to avoid an increase in your car insurance premium is to basically keep your mileage to a minimum.
When you first insure your car your insurance company will ask you how many miles you estimate your car will be driven annually. Try to keep this number as accurate as possible. If you underestimate the mileage, your car insurance premium can easily increase.
Cheating on Car Insurance: Mileage Accuracy
Insurance companies will ask you periodically how many miles you have on your car. It is never a good idea to cheat on your car insurance, so even if you are tempted to lie about this, don’t do it. The only person you are hurting is yourself, especially if you have a claim that can’t be substantiated by your mileage.
Imagine if you tell your car insurance company you only have 10,000 miles on it when you really have 17,000 miles. Although it seems like a small white lie, it can technically be considered insurance fraud; and this type of insurance fraud will only save you a minute amount of money. Yes, you may benefit from a low mileage discount, but it’s not worth the cost of losing your coverage.
The insurance company will most likely not come to your house to verify your car’s mileage. However, if you have any type of an accident or any insurance claim, your mileage will be reviewed by the insurance adjuster and the repair shop. At this time, your world could crumble around you if your mileage is not close to what is expected.
Your insurance claim can legitimately be denied, leaving you financially responsible for all damages involved. You can also be held liable for insurance fraud, although this would have to be proven in a court of law.
Estimating Car Insurance: Mileage Calculator
The best way to avoid problems with your car insurance and still pay a fair rate is to be honest and calculate your mileage as accurately as possible. If your mileage varies widely on an annual basis, discuss this exception with your car insurance agent.
Otherwise, estimating the mileage for your car insurance is fairly easy. The initial mileage on your car becomes negligible once you buy your car insurance. So, after you report your beginning mileage you only need to determine how many miles you drive on an annual basis.
Clock how many miles you drive to work and back and then calculate your annual usage for using your car for work. If you tend to drive to the grocery store once a week, this won’t add up to much, but add personal usage to your mileage as well.
It is also a good idea to include your annual road trip for your vacation. If you drive 500 miles one way every summer to visit your aunt in a bordering state, add 1,000 miles to your mileage estimation. The difference may not increase your insurance premium at all, but at least you will have appropriate coverage.
The insurance company is not going to hold you to every mile you estimate. This is just a gauge to determine if you drive 7,500 miles or less every year or if you drive more than 10,000 miles every year. It is in your best interest to give a fair assessment of your estimated mileage to your insurance agent so that your insurance premium is calculated correctly.
If you are not a frequent driver, your car insurance should be somewhat less than the person who wears out a car every couple of years. Shop around to avoid paying too much for your car insurance. Mileage of 7,500 or less annually is usually considered average and should garner you a fair rate. Enter your zip code now to get car insurance quotes for comparison!